Watches of Switzerland Q4 sales rise, "cautiously optimistic" about FY25

In the fourth quarter, revenue of 380 million pounds at Watches of Switzerland increased 4 percent at constant currency and 3 percent at reported rates, while luxury watches revenue rose 5 percent at constant currency and 3 percent at reported rates, with particularly strong performance in the US.

Full year group revenue of 1,538 million pounds, increased 2 percent at constant currency on prior year, and remained flat at reported rates.

Following the more challenging trading conditions of FY24, The company said that it is "cautiously optimistic" about trading in FY25.

"We finished the year strongly, with Q4 sales in line with guidance and ahead of consensus. Particularly pleasing was the performance in the US, with sales up 14 percent in the period. We enter FY25 with cautious optimism. We remain focused on executing our Long Range Plan and are committed to the targets to more than double sales and adjusted EBIT by the end of FY28," said Brian Duffy, chief executive officer of Watches of Switzerland.

Review of Watches of Switzerland’s financial results

Fourth quarter jewellery sales were flat on last year in constant currency and down 1 percent at reported rates with sequential improvement from negative 16 percent in the third quarter in constant currency and negative 18 percent at reported rates.

By geography, US revenue of 190 million pounds rose 14 percent versus last year at constant currency and 10 percent at reported rates. The company opened Watches of Switzerland One Vanderbilt, New York in March 2024 and secured a new Rolex mono-brand boutique in Lenox, Atlanta, opening in FY25, replacing the existing Mayors multi-brand.

On May 8 2024, the group acquired the entire share capital of Roberto Coin, the exclusive distributor of Roberto Coin in the US, Canada, Central America and Caribbean for 130 million dollars.

The company’s UK & Europe revenue of 190 million pounds, declined 4 percent. Sales trends progressed in the fourth quarter versus negative 7 percent in the third quarter, supported by an improvement in jewellery sales. Ecommerce revenue declined 20 percent.

The company carried out expansion of the Patek Philippe space in Watches of Switzerland, on Regent Street, London and opened two mono-brand boutiques for Tag Heuer and Tudor at Gatwick airport, South Terminal.

The company is all set to open a Rolex Boutique on Old Bond Street, London, Audemars Piguet Townhouse, Manchester and Mappin & Webb luxury jewellery boutique, Manchester in FY25.

Watches of Switzerland’s FY24 result highlights

US revenue of 692 million pounds, increased 11 percent at constant currency and 6 percent at reported rates, while UK & Europe revenue of 846 million pounds declined 5 percent impacted by macroeconomic conditions in the UK.

Luxury watches revenue was up 3 percent in constant currency and 1 percent reported, while luxury jewellery revenue dropped 13 percent in constant currency and 14 percent reported. The company added luxury jewellery brands within the portfolio, including Pomellato, Fred, Pasquale Bruni and Faberge.

The company forecasts adjusted EBIT to be between 133 million pounds and 136 million pounds for the full year.

The company projects FY revenue to be in the range of 1.67 to 1.73 billion pounds, growth of 9 percent to 12 percent at constant currency, and adjusted EBITDA margin to expand 0.2 percent to 0.6 percent from FY24,